6 Ways millennial couples can reduce rent or mortgage cost
I received an email from Jackie. Jackie is 29 and lives in San Jose. This was her situation…
Jackie and her husband have been married for three years. They bought a house almost two years ago. Now, Jackie feels like their mortgage is so expensive, she is nervous about having a baby.
She wants to know if they should sell their house.
To help Jackie, I gave her six different ways she could reduce her mortgage cost each month. I’m going to share those six options with you in this post. Before I get into the options, it’s important to know that some of these things are going to require a little bit of humility.
If you go to 1 Peter 5, verses 6 through 7, it says this, “humble yourselves therefore under God’s mighty hand, that He may lift you up in due time. Cast all of your anxiety on Him because He cares for you.” It may take some patience, and it may take some humility, but any of these six things I’m going to share with you can reduce your rent or mortgage cost.
Let’s get into what those things are.
Rent Out Spare Bedrooms
The first thing you can do is rent out an extra room. If you have an extra room in your house or apartment, nowadays it’s very easy to use the internet to rent that room out to someone else.
Renting out an extra bedroom will allow you to easily cut your rent or mortgage expense. By charging the other person to rent out that room, you may also be able to reduce some of your other household expenses as well.
Rent Out Your Home While Traveling
Another thing you can do is rent out your house or apartment when you’re traveling. If you’re going to go visit someone for the weekend, or you’re going to be traveling for the week, you can easily post your apartment or house to a site that will allow you to rent it out to someone else.
The nice thing about renting your house out on sites like VRBO or Airbnb is they will insure your house while a guest is staying there. Which means you don’t have to worry about someone damaging your property.
Refinance for Lower Interest Rate
Now, another thing you can do if you own your house is to refinance for a lower interest rate. Interest rates can have a big impact on your monthly mortgage payment. However, before you refinance there are some very important steps you must take.
Review your current loan statement. Understand how many years you have left on your current loan. When you refinance you want to make sure the term is equal to what you have left — or less than what you have left. Do not refinance for a new loan that will take you longer to pay off than your current loan. Let me give you an example…
If you originally got a 20-year mortgage and you’ve been paying on it for five years, you only have 15 years left. Do not refinance for a new 20-year or 30-year loan. In this case, you’ll want to refinance for a loan that’s 15 years or less.
A lot of people refinance but they just start the clock over, which means they’ll never get out of debt, and they’ll never pay off the property. That’s why this point is so important. If you’re going to refinance only refinance for a term that’s equal to, or less than, the term you have now.
Temporarily Stay in A Less Expensive Place
Another option is to temporarily stay somewhere that’s much cheaper and rent out where you currently live. If you like where you currently live, and you don’t want to move from there permanently, you can always sub-lease or rent out your current place while staying somewhere that’s less expensive.
This will allow you to save for a while, without losing the place that you love. This is a great option for people that don’t want to permanently leave where they’re staying but want some time to maybe catch up on some things — or just want to save up some money.
Temporarily Move in With Parents
You can temporarily move in with parents. If you have a good relationship with your parents, if it allows you to keep your job, and allows your kids to stay in the same school temporarily moving in with parents is a great option.
A lot of millennial couples are doing this. It’s allowing them to pay off debt quicker, and it’s allowing them to reach financial freedom quicker. This is an option I recommend to a lot of couples that reach out to me.
Move to A Different Place
Now, if you’re not tied to where you’re currently staying, you can keep your job, your kids can stay in the same school, and you can still be around your friends why not move to somewhere that’s less expensive?
If you decide to move to a place that’s cheaper, maybe you won’t have the big yard, maybe you won’t have the nice big house, but you’ll have peace of mind — and that’s more important. That’s why I opened this post by saying some of these options may require some humility.
At the end of the day, you have to ask yourself is peace of mind better than stressing over a rent or mortgage payment every month?
Let Me Help You Develop Your Personal Financial Plan
If you’re in a situation where you want a detailed financial plan, that’s based on your unique life and goals, then visit my website Greefinancialsolutions.net.
Our financial planning service can help you develop goals, develop strategies to increase your income, reduce your expenses, we’ll review your company benefits and see how that can save you money, give you strategies to reduce your taxes, and we can assess your insurance needs to make sure you have the proper insurance for the lowest price. Click here to check out the financial planning service.
If you know anyone that can benefit from this message, please share it with them and together we may be a blessing to someone else.
Thank you for taking the time to check out this post. May God bless you on your financial journey.
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